video2.0
New Horizon of Online Video
September 25, 2008
Jo, SanKu
KT

 video2.0
 Status of Online Video
 Contents
 Issues & Players
 Money & Ad
 Challenges
 The Future Now

video2.0
New Horizon of Online Video
video, TV
+
web2.0

video2.0
More RMC
RMC PCC
Contents UGC
TV
CATV
IPTV
Distribution TV Online Video
Device CATV web2.0
Mobile
Personalization
Search
On Demand
Audience $ $$$$$
Ad Market
Segment Individual, Networked, UGC

Mass Media to Social Media
Power Shift to People
Pre Media Age Mass Media Age Social
Media Age
Consumers
Dictate
Consumers
Dictated
Professional Media
Dictate
Church, State, Monarchy
Dictate the Agenda
Volume of Participation

TV/Mass Media video2.0
Media Company in Control Consumer in Control
One way / Delivering a Message Two way / Conversation
Influencing, Involving, Info =>
Entertaining
Life Style
UGC(User Generated Contents) +
RMC(Ready Made Professional
Contents)
PCC) Proteur Created
Contents) => Volume, Type
On Demand, Search, Personal,
Scheduled
Recommendation
Anywhere & Cross Devices with
TV
TV, PC, Mobile..
Family (Watching) Individual, Networked
Sit back Participative
Messages Experiences
Pay (Subscription) Free (Advertising)
Mass Ad Personalize Ad (Ad as Contents)

Video Age: True Conversation
“百聞不如一見”

Online Video
Web/PC/OnDemand
UGC Pro(RMC)
tv2.0
Internet TV
Open IPTV
IPTV
TV/Setupbox/Live by josanku 2008

Online Video in Korea
Paran Mobx
Leveraging Broadband & Mobile Infrastructure

Why Online Video?
 High Demand
 Online video viewing becoming mainstream: 57% in US
 High Involvement
 57% Shared Links.
 Over 50% Watched Videos with Others.
 80% Recall Seeing a Video Ad and 52% Have Taken
Action, Including 16% Making a Purchase.
 New Opportunity
 Communicate with Users and Attract Them
 Enter the Video Market
 New Revenue Streams

Online Video: Ongoing Traction
Internet Trends 2008, Mary Meeker

Online Video:TV+Internet+Mobile(CBS)
Complementary Platforms
Internet Trends 2008, Mary Meeker

Online Video: Life Style (New Portal?)
Internet Trends 2008, Mary Meeker

Old Media vs. Social Media

Contents: Liberation
RMC PCC UGC
(Ready Made Content) (Proteur Created Content) (User Generated Content)
Quality
Reputation
“百見不如一作 ”
News Hot Issue
Documentary Information Casual
Entertainment Knowledge Creativity
HowTo Video Fun
Mass, $$$$$ Parody Clipping
Viral Marketing Street News
Short Head Life Vloging
Many, $ or Not
Some, Show
Body Long Tail
by josanku 2008

Contents: What’s Hot?
 News
 Humor
 Movie Trailers
 Music Videos
 TV Show Clips
 User Generated
 Full TV Shows
(source:
eMarketer 2008)
22

Contents: Potential Sweet Spot
VideoWiki
Video Viral
RMC PCC UGC

UGC Media/Content Owner
New Player
Solution
video2.0 Search
SNS
Telco/CableTV
Ads CDN, P2P
Device

Issues & Players
 Google Economy and Ecosystem
 Video Open Platform – Joost
 Amazon Video
 RMC and UGC – Veoh
 Content is Still King - Hulu
 Cable TV to Online Video: Fancast
 Video Search – Blinkx
 Meta Video Site -magnify
 Short-form Original Content – Metacafe
 Video and Social Network – myspace and facebook
 P2P to Video Aggregation – BitTorrent
 Infinite Broadcasting Channels – TVU Networks
 Mobile & Video – Sekai Camera
 Place Shift - SlingBox
 AppleTV
 tv2.0: readwriteTV – Zillion TV

Google Economy and Ecosystem
Search Publish
Ad

Video Open Platform – Too Ideal?
 Real InternetTV
 P2P
 Free world premium contents
 Advertisement model

RMC and UGC

Book
Ecommerce
Web Services
CDN
Then, Amazon Video?

“Content is still King” – Content Owner
NBC & Fox
March 2008
$90 M at First Year
Profitable Model?
No Copyright Issue (70% with Ad)
YouTube: $200M ($90M in US) in 2008
for 3% UGC Ad

Cable TV to Online Video

Video Search
 Video Being Overloaded
 We Need Smart Filter: Video Search, Social
Watching.
 Content will not be King Soon.

Meta Video Site

Short-form Original Content

Video and Social Network

Social Watching

More Socially: Overlay & Mashup

P2P to Video Aggregation
PCDN (Peer Assisted CDN)

Infinite Broadcasting Channels:
Liberation of Broadcasting

Mobile & Video
A camera system that aims to merge
the virtual and real worlds by using
a digital device as a viewfinder.
http://www.techcrunch.com/2008/09/17/tonchidot-madness-the-video/

Place Shift & Social Watching

iTune
iPhone/iPod & AppleApp
Then, AppleTV?

tv2.0: readwriteTV
 TV – Still the Primary Media
Device
 Any TV & Movie Contents
 Empower People:
Personalization & Community
 Free or Oneclick Pay per View
 Pulled Ads as Content

tv2.0

Show Me the Money~

Trend
Money

US Online Video Ads Spending
2001~2011 (MM)
2008: $1.3B
2010: $3.1B
eMarketer, June 2007

Revenue Models:
Cash, Ads, Engagement
 Cash: Subscription, Pay per View
 Ads (Attention): CPM, CPC
Cash  Engagement: Lead Generation, Viral Marketing,
Ads
Rating
Engagement
70:20:10
Ads
Cash
Engagement Ads
50:30:20 Engagement
Cash
65:25:10
RMC PCC UGC
by josanku 2008

Online Video Ads

Attention vs. Money
Content : 2008, US
RMC
58% UGC
42%
Ad Revenue: 2008 US
UGC
4%
RMC Hulu (70%) vs. YouTube (3%)
98%
http://www.contentinople.com/author.asp?section_id=430&doc_id=158713
http://www.ipsos-na.com/news/pressrelease.cfm?id=4011

Online Video Ads Network

Overlay Ad

Viral Video & Measurement
Right Video at Right Time
www.tubemogul.com
at Right Place to Right Audience

Liberation of TV Ad

video2.0
Disruption
Threat or Opportunity
When?

War: Online Video Ecosystem & Economy
Contents Creators Contents Owners
Contents Distributers
Network
Operators
Attention
User Engagement Device
Money Manufacturers
Service,
Solution
Providers
Platform
Providers
Advertisers

Challenge
 Digital Noise
 Reputation and Trust System
 Privacy
 Copyright
 Distribution Control
 Traffic Overload and Network Abuse
 Guarantees on Quality
 Network Neutrality
 Revenue Model
 Another Poker Game

The Future Now
 More Blurring, Not just Convergence
 tv2.0, readwriteTV with Huge Potential
 HD Quality
 Any Type of Video including Broadcasting
 More Social and Community
 More Mobile
 Video Search for Contents and Contents
 P2P for Better Network Scalability
 Advanced Advertising Models
 Market Consolidation for Leading Ecosystem or Platform
 Video * : Main Stream

ME Broadcasting
(Mobile) Broadband Democracy

Thank U
josanku@kt.com